Categories: Business

Mukesh Ambani aims to make Reliance completely debt-free by December. Mukesh Ambani RIL net debt

Mukesh Ambani

new Delhi. Billionaire industrialist Mukesh Ambani has stepped up efforts to make Reliance Industries completely debt free. Reliance Industries has a net debt of Rs 1.61 lakh crore. Ambani wants to make the company completely debt free by adding more strategic investors. Ambani, chairman and managing director of Reliance Industries, had set a target of completely debt-freeing by August 2021 in August last year. He has recently tied up with Facebook for $ 5.7 billion, or Rs 43,547 crore. Facebook will acquire 9.9 percent stake in Reliance Jio. Apart from this, Reliance Industries has announced a rights issue of Rs 53,125 crore. Also, the company is going to sell a stake in its oil and petrochemicals business to Saudi Aramco. In such a situation, Reliance Industries can achieve the target by December this year.

After the announcement of Reliance Industries’ fourth quarter results for the last financial year, the joint chief financial officer of the company Srikanth Venkatachari said in an investor and media call that the target of zero debt will be achieved in the calendar year 2020. Ambani has sold 9.99 percent stake in digital platform Jio to Facebook after the August announcement. He has announced the splitting of Reliance’s oil and petrochemicals business into separate units, leading to the proposed sale of the stake to Saudi Aramco. With this, Ambani has said that any shortfall in the rights issue will be compensated. Venkatachari said that the company hopes to complete the Rs 1.04 lakh crore fund raising program by June.

The company has announced a rights issue of Rs 53,125 crore. It has been priced at Rs 1,257 per share. For this the issue ratio will be 1:15. In addition to this Rs 1.04 lakh crore, the company also got Rs 7,000 crore from the sale of 49 per cent stake in its fuel retail business to UK-based BP plc. Venkatachari said that investigations with Saudi Aramco are progressing rapidly. However, he did not say when the deal was expected to be completed. Reliance has valued its oil-to-chemicals business at $ 75 billion. This includes two refineries in Jamnagar, Gujarat, a 51 percent stake in chemical assets, auto fuel and aircraft fuel retail. Saudi Aramco is in talks to buy a 20 percent stake in the venture. At the end of March 2020, the outstanding debt on the company was Rs 3,36,294 crore and cash in hand was Rs 1,75,259 crore. After adjusting for cash, the net debt stood at Rs 1,61,035 crore. Of this, 2,62,000 is loaned to Reliance Industries and Rs 23,000 crore is in Jio’s account. In the same way, there are many more.

This post was published on May 1, 2020 10:43 pm

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